Ashok Leyland shares surge over 6%, hit fresh 52-week high; here is why

Shares of the Chennai-based commercial vehicle maker, Ashok Leyland, rose as much as 6.25% to hit a fresh 52-week high of ₹158.27 on the National Stock Exchange. On the BSE, Ashok Leyland shares advanced as much as 6.21% to hit an all-time high of ₹158.20 after its board approved merger of finance arm into NDL Ventures.

Ashok Leyland post market hours on Wednesday informed exchanges that its board of directors approved the scheme of merger by absorption of Hinduja Finance Limited into NDL Ventures.

As per the merger agreement 25 equity shares of face value of ₹10 each of NDL Ventures will be allotted as fully paid up for 10 equity shares of the face value of ₹10 each fully paid up held in Hinduja Finance.

"As per the scheme, the appointed date for the merger by absorption of Hinduja Finance with BDL Ventures shall be April 1, 2026, or such other date as may be directed or approved by the National Company Law Tribunal or aby other appropriate authority," Ashok Leyland said in an exchange filing.

Considering the growth potential in the non-banking finance sector and with an objective of creating shareholder value the transferee company intends to engage in the business of a non-banking finance company (NBFC), Ashok Leyland cited as the rationale behind the merger of the two entities.

Ashok Leyland Q2

Ashok Leyland earlier this month reported net profit of ₹771 crore in the second quarter of current financial year, marking a marginal increase of 0.13% from ₹770 crore in the same period last year.

The Chennai-based company's revenue from operations rose 9% in July-September period to ₹9,588 crore from ₹8,769 crore in the year-ago period.

Ashok Leyland reported stable operational performance in September quarter as its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also known as operating profit advanced 14% to ₹1,162 crore as against ₹1,017 crore, a year earlier.

The company's EBITDA margin improved by 50 basis points to 12.12%.

Ashok Leyland's board of directors approved an interim dividend of ₹1 per share and the company informed exchanges that the said interim dividend, would be paid, on or before December 11, 2025.

As of 12:46 pm, Ashok Leyland shares traded 6.3% higher at ₹158.29, outperforming the NIFTY50 index which was up 0.16%.